National Debt Relief review

5 December 2018

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Cut down your unsecured debt in 24–48 months.

After an accident, expensive divorce or unexpected job loss, dealing with the resulting debt is like salt in the wound. Before you file for bankruptcy, you may want to consider a debt settlement company. National Debt Relief negotiates with your creditors in an attempt to lower your debts. If successful, you may have a much softer blow to your credit history. Unfortunately, results aren’t guaranteed — and you might end up adding more debt to the pile.

What is National Debt Relief?

National Debt Relief is a debt settlement service. For a fee, it will negotiate with your creditors to reduce the amount of debt you owe. National Debt Relief is among the most recognized debt settlement services in the country, with high rankings from the Better Business Bureau and Trustpilot reviewers. It’s also accredited with top industry associations, including the American Fair Credit Council (AFCC).

Who is eligible for debt relief?

To qualify for National Debt Relief, you must have at least $7,500 in debt and a demonstrable financial hardship that you cannot recover from. Financial hardship includes a divorce, unemployment, loss of income, the death of a spouse and unpaid taxes. National Debt Relief uses this proof of your financial hardship as leverage to negotiate with your creditors.

How much does it cost?

National Debt Relief typically charges between 18% to 25% percent of the total debt you enroll over two to four years. However, your exact percentage depends on the amount you enroll and the state you live in.

What does this look like? To settle $10,000 of debt with an average interest rate of 15% over 36 months, you could end up with a total debt of $15,639.44 by the time you’re ready to negotiate. Your fee would likely fall between $2,815 and $3,910.

What are the benefits of using National Debt Relief?

No fees until you reduce your debt. You won’t pay National Debt Relief until after it negotiates down your debt.

100% money-back guarantee. If you aren’t happy with the way National Debt Relief reduces your debt, you can cancel without paying a penalty.

Works with some student loans. Most debt relief companies don’t touch student loans. But some private student debt qualifies for reduction with National Debt Relief.

Low minimum to enroll. You need only $7,500 in debt to enroll — not as much as you’ll find at other debt relief companies.

Highly rated support. National Debt Relief gets top ratings for customer service across the board, from users and professional reviewers alike.

What to watch out for

No relief for secured loans. Got a mortgage, car loan or any other type of debt with collateral? National Debt Relief can provide suggestions, but it won’t take you on. Unfortunately, this is the same for all debt settlement companies.

Low debt-reduction average. National Debt Relief might not save you as much money as its competition.

Damages your credit score. Meant as a last resort, debt settlement is a serious step that can damage your credit. To preserve your score, look into debt consolidation instead.

Not available in all states. National Debt Relief is only available in 41 states.

Is National Debt Relief legit?

Yes. National Debt Relief has been accredited with the Better Business Bureau (BBB) since 2013, which means it meets specific transparency standards. It gets an A+ rating from the BBB as well, based on some 180 user reviews. As of November 2018, more than 10,000 Trustpilot reviews average a 9.5 out of 10, with 84% of those reviewers rating it “Excellent” and another 11% rating it as “Great.”

Customer reviewers are mainly impressed with National Debt Relief’s quality customer service, which most report is helpful and patient, considering the situation. At least one customer was even able to start repairing their credit score. Negative reviews tend to have less to do with the drawbacks of National Debt Relief than debt settlement itself.

You’re also eligible for 90 days of identity theft coverage worth up to $100,000 after you enter your information on the site. Simply go to the site and click the McAfee icon on the bottom of the page to sign up.

Beyond this, it’s accredited with trade organizations like American Fair Credit Council and the International Association of Professional Debt Arbitrators that set the standards for the debt settlement industry.

How do I sign up?

With National Debt Relief, you have the option to start the process over the phone by calling (855)-459-1560. You can also start online by completing the following steps:

Click the Go to site button on this page to be directed to National Debt Relief’s website. Then select the amount of debt you would like to settle and click Continue.

Enter your contact information and hit Click Here To See If You Qualify For Debt Relief.

I’ve signed up. What happens next?

Set up a payment plan. National Debt Relief works with you to set up a plan of how much you’ll pay into an account, from which it then pays your creditors and deducts its own fees.

Start paying into your settlement fund. National Debt Relief asks you to make monthly payments into an escrow account that it can eventually use to pay your debt settlement costs. This monthly payment is typically lower than monthly payments on your debt. While you can stop making payments on your debt if it’s unaffordable, you’ll end up paying more in the end.

National Debt Relief negotiates with your creditors. Once you have enough funds in your escrow account, National Debt Relief negotiates with creditors to settle your debt for a one-time payment. And it’s totally normal if it doesn’t work the first time.

Authorize payments from your settlement fund. While it’s not a guaranteed outcome, if your lender decides to settle, National Debt Relief pays off your debt using your funds. It also deducts its fee from your settlement fund.

3 tips to make using National Debt Relief a smart move

Don’t take on more debt. Qualifying for debt settlement is a clear indicator that you aren’t in a position to afford more debt.

Stick to a budget. Take advantage of National Debt Relief’s free budget planner, and create a spending strategy to keep from missing payments to your settlement account.

Keep in touch. Contact National Debt Relief’s customer service line whenever you have questions. If you have trouble staying on top of your monthly payments, let them know — it could help your case.

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Other debt relief options to consider

Not sure debt settlement is right for you? You’ve might want to look into these other options:

Debt consolidation loans.Taking out a new loan to move all of your debt into one place can make payments more manageable and hopefully get you better rates and terms if your debt load is high but manageable.

Credit counseling. When you’re struggling with debt, going to a government-approved credit counseling agency might be your first stop. For a fee, you can make an appointment to go over your personal finances and come up with a plan of action.

Debt management. Similar to debt settlement but less extreme, some credit counseling agencies will negotiate with your lenders to come up with a modified payment plan to get out of debt. Typically, a successful debt management plan comes with a lower interest rates or more affordable payments.

Bottom line

Debt settlement shouldn’t be taken lightly: It can affect your ability to get credit in the future and isn’t worth it unless you have plans to stay out of debt afterward. But if bankruptcy sounds like your only other option, National Debt Relief is a legitimate way to get back on track without going that route.

Frequently asked questions

National Debt Relief doesn’t guarantee savings. However, the average savings of a National Debt Relief customer was around $6,296 between 2014 to 2016. Your individual savings will vary depending on your specific debt and repayment plans.

Since many borrowers stop paying off lenders while enrolled in a debt settlement program it can seriously damage your credit score in the short-term. If you’re able to complete the program and settle your debts, it could help improve your credit rating in the long-run, however.

You might want to sign up for credit counseling with a government-approved agency before choosing a debt settlement program. It can help you put together a plan to get your finances back on track and decide which course of action is the right move for you.

It depends on your financial situation. Normally, the IRS counts debt forgiveness of $600 or more as taxable income. However, if your liabilities are greater than your assets at the time of debt settlement, you might not have to pay taxes. Consult a tax specialist if you aren’t sure about your situation.

Your monthly payments go to an FDIC-insured trust account with Global Client Solutions, a company that provides account management services to the debt relief industry.

Not if you want to settle your credit card debt. If you decide to stop making credit card payments (most people do), your creditor usually closes your account.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

2 Responses

There are two principal debt-relief options: debt settlement and bankruptcy. Both of these methods of debt relief will affect your credit score. Getting a debt consolidation loan or using a credit counselling service, might be one of your options as well.

I am sorry to hear about you having no income. You may refer to the steps below on how to deal with a debt without an income:
– Create a Survival Budget
– Prioritize Your Debts
– Negotiate With Your Creditors
– Explore Other Sources of Income or find a temporary work
– Available public assistance programs may help
– Debt Consolidation
– Debt Settlement

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